Hong Kong leader downplays business closures, cites anticipated GDP growth

Hong Kong’s leader has downplayed concerns over the sluggish economy after a recent string of business closures, saying the city had achieved GDP growth over the past year and that the number of registered companies had hit a record high.

Chief Executive John Lee Ka-chiu on Tuesday also urged businesses to reform themselves amid what he called a transitional period, following the recent abrupt closure of the 33-year-old congee restaurant chain Ocean Empire.

“New demands and new likings are emerging. There are sectors which do well and some sectors which don’t do as well. Some shops are closed while many are open,” Lee said ahead of his weekly meeting with advisers on the Executive Council.

“There will be ups and downs in different sectors during this transitional period, but overall, we see positive growth in GDP this year,” he said, referring to recent estimates by the government that the annual figure would remain at 2 to 3 per cent.

Despite the recent chain closures, Lee highlighted that the number of registered companies in the city had reached a record high of 1.46 million by the end of last year, an increase of some 29,000 companies.

The 84 enterprises recruited by the Office for Attracting Strategic Enterprises were also expected to bring in direct investment of over HK$50 billion (US$6.39 billion) and create over 20,000 jobs, he added.